UN: Multinationals See India as Strong Investment Opportunity for Alternative Manufacturing Base
India Remains ‘Strong’ Recipient of Foreign Investments: UN Report
United Nations, April 10 (IANS) – According to a United Nations report, India continues to attract foreign investments as multinationals view it as a viable alternative manufacturing base for their supply chains. The Financing for Sustainable Development 2024 Report highlighted India’s growing appeal to multinationals seeking to diversify their supply chain strategies.
The report emphasized that while investment in developing countries is facing challenges, South Asia, particularly India, remains a strong destination for foreign investments. It noted that India’s attractiveness as an “alternative manufacturing base” is in response to the supply chain diversification strategies of developed economies, without directly mentioning China.
Deputy Secretary-General Amina J. Mohammed warned of a “sustainable development crisis” affecting the developing world due to high debt burdens and borrowing costs. She emphasized the urgent need for leaders to fulfill their promises and address the financing gap, which is currently estimated at $4.2 trillion annually.
Mohammed suggested that reforms are necessary in global financial institutions to address contemporary challenges effectively. The report also highlighted the New Development Bank’s plan to issue a significant portion of its loans in national currencies, including Indian rupee-denominated bonds, between 2022 and 2026.
Despite the challenges posed by geopolitical tensions, climate disasters, and a global cost-of-living crisis, the report called for immediate action to mobilize financing at a larger scale to bridge the development financing gap. It emphasized that without adequate financing, the UN’s sustainable development targets for 2030 cannot be achieved.
In conclusion, the report underscored the critical need for swift action to address the issues hindering sustainable development globally. It called for a collective effort to reform existing financial mechanisms and mobilize resources to tackle the pressing challenges faced by developing countries.
